15 Nov 2024
US-based automotive supplier narrows loss during the first nine months but earnings dip
Northville, Michigan – Cooper-Standard Holdings Inc. has revised down its full-year sales and earnings forecast amid lower automotive production.
The US-based automotive supplier reported a loss of $119 million (€112 million) for the three quarters ended 30 Sept, compared to a loss of $147 million the year before.
Sales for the nine-month period fell 3.3% to $2.0 billion, while adjusted earnings declined 9.3% year-on-year to $126 million, Cooper Standard reported 31 Oct.
Third quarter sales dipped 7% year-on-year to $685 million, due mainly to the timing of commercial settlements that occurred in the third quarter of 2023.
Other factors included unfavourable foreign exchange and lower production volume and mix.
Net loss for the three months to end of September was $11.1 million, down from a profit of $11.4 million in the prior-year third quarter.
The loss included restructuring charges of $1.5 million and a pension settlement credit of $2.2 million.
Adjusted earnings for the quarter declined by over 40% to $46.1 million due to 'the timing of commercial settlements in the third quarter of 2023, unfavorable foreign exchange, continuing general inflation and lower overall production volumes.'
These negative factors were partially offset by the savings generated from lean manufacturing and purchasing initiatives and implemented restructuring actions.
During the third quarter, Cooper Standard reported savings of $24.5 million from its “intense focus on lean initiatives and operating efficiency.”
The savings helped partially the headwinds from lower production volume and unfavourable foreign exchange that have persisted during the first nine months, said Jeffrey Edwards, chairman and CEO.
The US supplier said it received net orders of $44.0 million during the third quarter, including awards worth $32.3 million on battery electric vehicle platforms and $7.9 million on hybrid vehicle platforms.
Due to softer projections for light vehicle production in 2024, inflation and unfavourable foreign exchange rates, Cooper Standard said it was lowering its full-year outlook.
The group now expects full-year sales to come in around $2.70-2.75 billion, down from earlier estimate of $2.8-2.9 billion.
Adjusted earnings are expected to be around $180-195 million, compared to a previous outlook of $180-210 million.
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